(1) when users are created their emails are set in the format of [email protected] how can I set this up so that when users are created their emails are [email protected]?

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If domain.com is on the Co-Domains tab of that web site (with an empty hostname), then the user automatically has [email protected] and [email protected] as email addresses. You don't have to configure anything else.
You can check if [email protected] is in /etc/postfix/virtusertable.

Ok I got the emails to work with [email protected], I can now receive emails but cannot send out well not completely because I can only send out if I do a reply to who ever I received an email from but if I start a new email it never reaches my destination.

I'm sending an email from user [email protected] which is a site being hosted on the same address as server1.hcihm.org it does deliver to yahoo accounts but it takes a while and msn doesnt seem to work at all with msn accounts only works if I reply a message originated from msn but cannot create a message to an msn recipient. Thank you for all your help. I'm using UebiMiau and hopefully later outlook or thunderbird as I'm trying to host three site but would like to get one working.

To me this looks like a spam preventing measure from Hotmail because sending to Yahoo works.
I could imagine that you don't have a proper PTR record or SPF record fro your domain, that's why Hotmail refuses to accept your mail - with one exception: if a Hotmail user sends you a mail, and you reply to that mail, then Hotmail seems to recognize that this was initiated by a Hotmail user and therefore thinks that this isn't spam.
I'd contact the Hotmail support and ask what could cause this trouble.

I read this thread and I am experiencing the same issue as described. I can reply to a hotmail address and it works, however once I try to create from the webmail and send it, it doesn't go to my hotmail inbox. I do not think this is spam, Falco. I found out something interessting.

I wrote an email to my email box on my server and also sent the email to some other hotmail account that I have. Then I did a REPLY ALL in webmail, and then it went back to the email that I sent it from (which was hotmail). Then for the other address, it now says reply to "[email protected]"@hostname.domainname.com, which is wrong. So, something is happening with UebiMiau Webmail, but I am not sure how to fix it.

I read this thread and I am experiencing the same issue as described. I can reply to a hotmail address and it works, however once I try to create from the webmail and send it, it doesn't go to my hotmail inbox. I do not think this is spam, Falco. I found out something interessting.

I wrote an email to my email box on my server and also sent the email to some other hotmail account that I have. Then I did a REPLY ALL in webmail, and then it went back to the email that I sent it from (which was hotmail). Then for the other address, it now says reply to "[email protected]"@hostname.domainname.com, which is wrong. So, something is happening with UebiMiau Webmail, but I am not sure how to fix it.

If I use Outlook, however, everything works.

I would appreciate any comments or help on this matter,

Thanks,

Geir

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Which address is in the "to:" field when you reply in UebiMiau? This looks more like a formatting error in UebiMiau the a problem with your email server. Do you get the same behaviour when you use thunderbird or outlook as email client?